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Crude Oil WTI Futures - Jun 24 (CLM4)

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Crude Oil WTI Futures Discussions

How the Yaun-backed Oil Futures Shanghai Exchange is a threat to WTI: Imagine CME as a grocery store that is all the way across town. It's the only grocery store around so you have no choice but to either shop there or starve. Not only is it way across town it doesn't even accept US dollars. You have to convert US dollars to the currency that the grocery store accepts.
But a new grocery store opens up in your neighborhood AND it does accept US dollars. Where will you shop? Do you continue to go all the way across town, convert your US dollars and then go all the way back home after shopping ? Not if you're smart. Not if the prices are similar. The grocer across town will either have excess inventory that he hasn't had before or discount it so you'll make the trek in search of a deal. Bearish for both grocers. Favorable to the consumer.
Same thing happened when bitcoin started trading in the CME futures market. Prior to it being traded, it had rallied all the way to 21k. Now in the 7k range. Lost two-thirds. Crude however has other things going for it. I do believe it is short term bearish but long term bullish, given the global interest (and production/price manipulation) to keep prices high. I’m concerned about the high COT ratio and speculation in the market. 700k spec interests! Smh
+100.
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